I shall explain in detail the Decrease/Increase in Pension and Commute with Age, Basic Pay and Service after the revision of Basic Pay Scales 2022 for Federal and Provincial Govt employees. You can easily find the amount of pension, gratuity, or commute with the factors of age, length of service, and basic pay.

Decrease/Increase in Pension / Commute with factors of Age, Basic Pay, and Service

 

The increase/decrease in a pension depends on the following factors:

 

• Last Drawn Basic Pay
• Age at the time of retirement
• The total length of service at the time of retirement

 

Although the employee can take retirement at any time after 25 years of service, however, these above factors can increase or decrease the pension/gratuity or commute amount. I have already explained in detail about the right time to get retirement from the service of an employee. Let’s check the various values of pension and commute with various factors.

 

Example of calculation

 

To know in detail the effect of the factors on pension and gratuity we shall take the example of an employee of BPS-16 with 25 years’ service, Rs. 61970/- Basic pay, and 55 years of age. If Government doesn’t revise the basic pay scales during the next 5 years, the basic pay of the said employee will be as under during the next five years:

 

• 61970/- (Current)
• 64230/- (01-12-2022)
• 66490/- (01-12-2023)
• 68750/- (01-12-2024)
• 71010/- (01-12-2025)

 

The current age of the employee = is 55 years

Total Service (current) = 25 years

 

Calculation of Pension with Various Factors

 

Now let’s calculate the amount of commute or gratuity and pension taking the above values:

 

 

 

At 55 Years of Age

 

• Basic Pay = Rs. 61970/-
• Age= 55 Years
• Service = 25 years

 

Basic Pay	61970
Total Service	25
Age Rate	15.1478
Ardali Allowance (if any)	0
For BPS-16
RESULTS
Gross Pension	36149.17
65% Pension	23496.96
35% Pension	12652.21
Commute	2299837.46
Pension without Medical	33405.33
Medical	5874.24
Net Home Take Pension	39279.57

At 56 Years of Age

• Basic Pay = Rs. 64230/-
• Age= 56 Years
• Service = 26 years

 

Basic Pay	64230
Total Service	26
Age Rate	14.5602
Ardali Allowance (if any)	0
For BPS-16
RESULTS
Gross Pension	38966.20
65% Pension	25328.03
35% Pension	13638.17
Commute	2382893.79
Pension without Medical	36008.54
Medical	6332.01
Net Home Take Pension	42340.55

At 57 Years of Age

 

• Basic Pay = Rs. 66490/-
• Age= 57 Years
• Service = 27 years

Basic Pay	66490
Total Service	27
Age Rate	13.9888
Ardali Allowance (if any)	0
For BPS-16
RESULTS
Gross Pension	41888.70
65% Pension	27227.66
35% Pension	14661.05
Commute	2461085.12
Pension without Medical	38709.22
Medical	6806.91
Net Home Take Pension	45516.13

At 58 Years of Age

 

• Basic Pay = Rs. 68750/-
• Age= 58 Years
• Service = 28 years

 

Basic Pay	68750
Total Service	28
Age Rate	13.434
Ardali Allowance (if any)	0
For BPS-16
RESULTS
Gross Pension	44916.67
65% Pension	29195.83
35% Pension	15720.83
Commute	2534324.10
Pension without Medical	41507.35
Medical	7298.96
Net Home Take Pension	48806.31

At 59 Years of Age

 

• Basic Pay = Rs. 71010/-
• Age= 59 Years
• Service = 29 years

 

Basic Pay	71010
Total Service	29
Age Rate	12.8953
Ardali Allowance (if any)	0
For BPS-16
RESULTS
Gross Pension	48050.10
65% Pension	31232.57
35% Pension	16817.54
Commute	2602405.91
Pension without Medical	44402.95
Medical	7808.14
Net Home Take Pension	52211.09

You may also like: Increase in Salary Chart December 2022 (Annual Increment)

 

Table of Comparison of Pension and Commute/Gratuity

 

The comparison of the table on the basis of different factors is as under:

 

Sr. No	Basic Pay	Age	Length of Service	Commute/Gratuity	Pension
1	61970	55 Years	25 Years	2299837.46	39279.57
2	64230	56 Years	26 Years	2382893.79	42340.55
3	66490	57 Years	27 Years	2461085.12	45516.13
4	68750	58 Years	28 Years	2534324.10	48806.31
5	71010	59 Years	29 Years	2602405.91	52211.09

The employees should also check their service records before they get retirement. The mistakes in records may cause difficulties for the employees. Especially the date of birth, if there is an issue with the date of birth, the employee should get it corrected well in time. I have explained in detail the procedure to correct the date of birth of the employee as per the service record and CNIC. This will really help the employees. After checking all the observations, the employee can decide his exact time of retirement.